NickB's 4H Scalping Method

[phil838]

I've noticed that a lot of people here on Babypips lately are interested in the NickB method. Nick was a Babypips blogger last year, but his method never caught on and his blog died out...

I think part of the problem is that even though Nick's strategy is floating around Babypips, it's in the form of a 42 page .pdf document that no one wants to read!! So here, in one page or less, I'm going to explain the most popular aspect of NickB's trading system, the 4 Hour Scalping Method.

I've been trading this system live for almost a year now, and I've done very well with it. I have a 70% win rate on these trades so I think it's time to get more Babypippers trading this way!!

The setup for the trades is simple...

Pair: GBP/JPY
Timeframe: 4 hour
Indicators: NONE!!

What we want to do first is to find recent swing highs and swing lows where the price has hit and made a significant reversal. Here are some examples.




At each of the orange lines price changed direction and moved, over many 4 hour candles, hundreds of pips away. These orange lines are called scalp lines.

So what do we do with these scalp lines?? You trade them! When the price returns to a scalp line you simply place a trade on the break of the line using a 50 pip stoploss and a 50 pip takeprofit. That's all there is to it!

Here is an example of a scalp line break:




Not only are these trades easy to find, they can be taken with pending orders! So if you work full-time this is a great method to use!

If anyone has any questions or comments feel free to post them. And, just to be clear, this is not my system. It was developed by Nick Bencino, aka NickB.

EDIT: Here's a copy of Nick's ebook that describes his entire system.

[johnnykanoo]

I think part of the problem is that even though Nick's strategy is floating around Babypips, it's in the form of a 42 page .pdf document that no one wants to read!!

I think if people aren't willing to do any work how can they be successfull?

Also I think people want more than 100 pips a week, but if you look at it 100 pips is more than enough to be a success at forex. Also look at signal services that charge you monthly basically nobody consistantly earns more than 400 pips a month.

Bottom line is Nicks method works, its simple and its profitable. I think anyone who isnt profitable right now should consider looking at his method more closely.

thanks, john

[tonymand]

Originally Posted by phil838

I think part of the problem is that even though Nick's strategy is floating around Babypips, it's in the form of a 42 page .pdf document that no one wants to read!! So here, in one page or less, I'm going to explain the most popular aspect of NickB's trading system, the 4 Hour Scalping Method.

Something I totally agree with you about Phil. I am surprised Nicks method doesnt have more followers. Interested that you have a 70% win rate. Do you stick to the 1R return per trade or try to let it go.

[phil838]

Originally Posted by tonymand

Something I totally agree with you about Phil. I am surprised Nicks method doesnt have more followers. Interested that you have a 70% win rate. Do you stick to the 1R return per trade or try to let it go.

If price is moving fast I'll let it go a little, I get and extra 10-30 pips quite often, and more on occasion.

[johnnykanoo]

hey guys nick is going to be hosting another 5 day forex blitz and if you missed the last one you owe it to yourself to sign up. It is 100% free and very educational. there will be webinars, videos, articles and again 100% free.

I get crap offers in my email all the time to join this course or that course blah blah blah. Im telling you throw all that crap away and see what profitable trading looks like. your gonna be suprised at how simple it can be!!!

5 Day Forex Blitz!

[dobro]

Originally Posted by johnnykanoo

hey guys nick is going to be hosting another 5 day forex blitz and if you missed the last one you owe it to yourself to sign up. It is 100% free and very educational. there will be webinars, videos, articles and again 100% free.

I get crap offers in my email all the time to join this course or that course blah blah blah. Im telling you throw all that crap away and see what profitable trading looks like. your gonna be suprised at how simple it can be!!!

5 Day Forex Blitz!

I second the motion plus I urge everyone to download Nick's free Ebook - lots of good trading info there even if you don't use his strategy. Unless thinking is not your bag. And Phil in one post excellently explained Nick's "scalping" (huh, scalping on a 4H chart!?) strategy - thanks for that Phil. d

[lavaman]

Originally Posted by johnnykanoo

hey guys nick is going to be hosting another 5 day forex blitz and if you missed the last one you owe it to yourself to sign up. It is 100% free and very educational. there will be webinars, videos, articles and again 100% free.

I get crap offers in my email all the time to join this course or that course blah blah blah. Im telling you throw all that crap away and see what profitable trading looks like. your gonna be suprised at how simple it can be!!!

5 Day Forex Blitz!

Thanks for the info johnnykanoo, I just registered, and for starting this thread phil838. I took my first trade with Nick B's method yesterday and it was an easy 50 pips. I love the simplicity of it. I think I need something like this. I've been trying to trade gartleys and butterflys lately because I like doing the more complex chart analysis. But I always go crazy when the moves are successful but I just barely don't get filled. This always happens it seems no matter how much I shade my entry. Then I get frustrated and the emotions that affect my trading start to kick in.

Anyway, that's neither here nor there. With Nick B's system, if the trade is going to be successful, I'm going to get in it. It's amazingly uncomplicated and I think that helps keep my emotions in check.

[johnnykanoo]

lavaman im glad you are trying out nicks method. i personaly love it. its 4h charts so i can have a life. i just bring my netbook with me and once every 4 hours or so i check my charts.

I really am happy to see so much support for nicks system and again i really encourage the newer traders to check out his 5 day blitz, even veteran traders can get a fresh perspective (like me) his method has really helped me be consistant.

[Louise]

Has anyone ever tried Nick's method on the GBP/JPY one hour chart. I'm very new to this but it looks as though if may be possible? Thank you

[phil838]

Originally Posted by Louise

Has anyone ever tried Nick's method on the GBP/JPY one hour chart. I'm very new to this but it looks as though if may be possible? Thank you

It's possible it could work, but you'd need a lower stoploss and profit target.

I personally wouldn't trade it on 1H charts. The strategy works due to the initial momentum generated by a lot of trader buying or selling at once.

The lower the time frame you go the less momentum there will be, because less traders will be seeing that line.